From Mustapha Adamu, Kano
Scrap and waste dealers in Kano State have joined a 15-day nationwide warning strike over alleged unfair pricing and weighing practices by iron-smelting companies operating in Nigeria.
The dealers, under the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN), said the industrial action followed a prolonged dispute with steel manufacturers, including foreign-owned companies, over scrap metal prices, weighing procedures and other business practices.
Speaking to journalists on Thursday at Youngxing, a Chinese-owned iron-smelting company in Kano, NASWDEN Deputy National President, Aminu Hassan Soja, said members had suspended the supply of scrap materials to steel companies nationwide.
Soja said the warning strike would last 15 days, adding that the association could consider an indefinite shutdown if the Federal Government failed to intervene in the dispute.
“We have suspended supplies to the companies because we believe their practices are affecting our businesses and causing significant losses to our members,” he said.
According to him, scrap dealers have complained about alleged arbitrary reductions in the agreed prices of materials after delivery, as well as discrepancies in the weighing of scrap metals at some companies.
He claimed that dealers could lose between N3 million and N4 million on a truckload due to price reductions and other deductions.
“They depreciate our prices on a daily basis, causing huge losses to our members. On one truck, we can lose about N3 million to N4 million,” Soja said.
He also alleged that discrepancies sometimes occurred between the weight recorded by dealers before delivery and the figures used by steel companies to calculate payments.
“When we supply 1,000kg, which is one tonne, we sometimes discover that the weight recorded by the company is between 600kg and 750kg,” he alleged.
Soja said steel manufacturers had attributed some price adjustments to developments in the international market, geopolitical tensions and the availability of cheaper imported raw materials.
He, however, questioned why lower raw material costs had not resulted in corresponding reductions in the prices of finished steel products.
The association also raised concerns over the specifications of reinforcement bars produced by some manufacturers, alleging that certain products could fall below their stated measurements.
Soja said such allegations should be investigated by the relevant regulatory authorities because of the potential implications for the construction industry and public safety.
He called on the Federal Government and relevant agencies to intervene and facilitate discussions between scrap dealers and steel manufacturers.
According to him, the scrap industry provides livelihoods for millions of Nigerians, particularly young people, and any prolonged disruption could affect jobs and businesses across the value chain.
“These companies are sending many youths out of business. Apart from agriculture, our sector is one of the major employers of labour, with millions of young people earning their livelihoods from the scrap industry,” he said.
Soja warned that NASWDEN could embark on an indefinite nationwide strike if the issues remained unresolved after the 15-day warning action.
The steel companies named in the allegations had not publicly responded to the association’s claims at the time of filing this report.
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